China is no longer the most popular overseas production site for Japanese companies as rising labor costs and worsening ties between Japan and China over a territorial dispute hurts the country’s appeal, according to a survey of firms by the state-owned Japan Bank of International Cooperation (JBIC).
China, which has topped the survey since it began in 1992, fell to fourth place this year, behind Indonesia, India and Thailand.
The survey covered 625 Japanese manufacturers with three or more overseas affiliates including at least one production base outside of Japan.
JBIC provides finance to help Japanese companies secure oil and gas reserves for Japan and provides loans to manufacturers looking to expand overseas.
REUTERS
